Here Comes the Bounce

Instead of buying into the bounce, I am covering some of my shorts, via selling [[FXP]], [[EEV]] and a few others.

In short, degenerate OTB guys are trying to catch an emergency Fed rate cut early, buying now. These fat losers think they will sell on Friday, then proceed to buy a new car or boat over the weekend.

Well, I got news for you, fuckface, “The Fly” already bought that boat. It’s mine.

As you can see, oil is breaking down here, dragging lower big-stupid oil stocks. With my money, I will press my bets in [[DUG]] and buy more. I feel oil is on the other side of the mountain now and will soon afflict great damage to those who are long [[XOM]], [[CVX]]— and other big stupid oil companies.

Keep in mind, if the Fed doesn’t cut by Friday, down we go again.

NOTE: With oil knifing lower, [[DCR]] is looking “gangster good.”

I sold 19,000 [[FXP]] between $91-94.

With the stock down more than 20% today, and some of you still in the stock (unfortunately), I did a little sniffing around.

Apparently two quant funds blew out over 1 million shares today, indiscriminately. Meaning: someone needed to get out, no matter what.

My sources, who speak with management, insist that everything is all good.

Bottom line: I’m not buying the stock because of my written in stone game plan, which is to go long 2nd half of 2008. Plus anyway, I’m bearish as a bear in a bear cave eating bear food.

However, it’s worth noting, people tell me “it’s a screaming buy.”

You’re welcome.

UPDATE: Look for the company to unveil its embedded version of the Picop in February.

The worst part of this market is the lack of panic. For the most part, this recent decline has been orderly.

The biggest misnomer is the untested theory that Asia has decoupled from the U.S. Well, for those of you who believe that, tell it to the fuckers in Hong Kong, who lost more than 5% in trading last night.

Near term, I wouldn’t be surprised to see Bernanke and Co. step in and save the day, via an emergency rate cut. If he is serious about doing it, expect it to happen on Friday, which conveniently falls on option expiration day.

With my money, I may bulk up on my [[LEH]] short position, while taking profits on others. Thus far, I’m undecided.

Finally, it’s worth noting the queer nature of all semiconductor stocks. [[INTC]] shit the shower, big time. Expect many others to do the same.

On a pullback, I would buy [[SSG]], which gets you short the semi’s (double inverse), namely INTC, [[TXN]], [[NVDA]], [[AMAT]] and [[WFR]]—amongst others.

NOTE: Anyone know what the fuck just happened to [[MVIS]]? Fucking assholes, they are.

As you know, since early December of 2007, “The Fly” has been positioning for this leg down. Here are the results:

Top 10 Holdings

1. [[FXP]]

2. [[DUG]]

3. Cash

4. Short [[DECK]]

5. [[RIMM]]

6. [[CLX]]

7. [[AAPL]]

8. Short [[LEH]]

9. [[EEV]]

10. [[GME]] [[SKF]] is a close 11.

UPDATE: Danny followed up my “How Much Lower Will We Go” post, with some charts. The point I was trying to make, as you can see in the charts, the market will likely trade lower, before making a recovery. Make no mistake, the market will recover all of its losses and then some, eventually. However, I feel a real trading bottom may not come until March.

UPDATE II: Stock futures added to market data box.

[youtube:http://www.youtube.com/watch?v=aXJemMbUFYU 450 300]

Hopefully “The Fly” saved some of you dumber types from losing vast amounts of coin. However, it’s worth noting, what you consider “vast,” to me, is considered “walking around money.”

You may be thinking: “the market has to bounce now.” While that may true, by March the Dow will be at least 10% lower from today’s close.

Write it down.

If you want to get ahead of the curve, get short oil. Fund managers are racing to cash, as their retarded funds feel the “hammer of certain death.” Within most big funds, [[XOM]] is a big, dumb overweight position. As I said before, [[DUG]] is the best way to play oil stocks going lower.

In short, “The Fly” has started off the new year in spectacular fashion, up 4.62% today alone—thanks to big dicked gains in [[FXP]], [[SKF]], [[DUG]], [[EEV]], [[DCR]], including [[DECK]] and [[LEH]] shorts. Year to date, “The Fly’s” vast holdings are up more than 12% or more than yours.

Naturally, having a “calculator brain” and “time machine” has given me an unfair advantage, over most of you lemmings. However, for the most part, I’m just acknowledging the obvious economic problems, then trading on it.

In all seriousness, I hope you are not getting clubbed to death, during this market decline. Remember, I need you leeches to come back here, everyday, so that I can brag about how much smarter I am & shit.

Pardon me UPDATE: After further review, I was up 4.81% today. Sorry for the mix-up. Off to drink some “rich man’s whiskey.”

It Gets Better UPDATE: INTC prelim $0.38 vs $0.40 First Call consensus; revs $10.7 bln vs $10.84 bln First Call consensus

CNBC finds it funny that the market is “shitting the shower.” My evidence is dumbass, off camera giggling.

See, everyone is fixated on the amount of write-downs at our dumb banks. However, what is being lost in the greasy sauce, somehow, is the health of the underlying business’.

During the tough times of 2000-2002, there were no deals. Deal firms were fucking starved, forced to push out cornball preferred offerings.

Nothing hot.

Speaking to friends, I can tell you, deals are in jeopardy of being canceled. When markets dive, the risk appetite of investors vanishes, making speculative deals, via secondary or ipo, nearly impossible to price. And, if they do get done, expect them to be priced down.

My point: deal firms like [[LAZ]], [[GHL]], [[TWPG]] or [[COWN]] will suck wind, indefinitely. Moreover, big brokerage firms, like [[LEH]], [[MS]], [[MER]], [[JPM]], [[BSC]] and even [[GS]] will suffer too.

Also, any companies with loads of debt and a need to go to market for capital will be shorted, until oblivion. If XYZ corp relies upon the markets for capital, while those markets are essentially shut down, they will be forced to either default or raise cash, via undesirable means—such as PIPE’s.

In short, examine the stocks you own. Make sure they have pristine balance sheets and avoid the temptation to bottom fish.

In my opinion, all of the stocks mentioned above are shorts.

I sold out of my remaining [[GLF]] and [[BBY]] positions.